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AbC Certified vol 2 Issue No. 37
karachi, Tue sept 30 - Mon October 06, 2014
weekly
regd. No, MC-1381
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revIsING TArGeT
FBR is planning to review the tax collection target of Rs2.81 trillion set for the current financial year 2014-15 owing to devastating floods in the country. | see pAGe 02 | TrANsFerrING sTAFFers
Customs Appraisement-South Chief Collector Nasir Masroor orders immediate transfers and postings of 10 subordinate employees. see pAGe 03 | CLeArING veHICLes
● Fled accused in TCs smuggling case gets protective bail ● smart Zone Company CeO shakirullah still at large ● Customs high-ups decide to put names of accused on eCL
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
Collector Appraisement (West) M Saleem has issued Standard Operating Procedure (SOPs) for clearance of vehicles through WeBOC system. | see pAGe 04 | erADICATING sMUGGLING
Multan Customs Intelligence has curbed smuggling in its precincts and only 9 cases of seizure are registered owing to good performance. | see pAGe 10 |
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hazanfar Gul, the fled accused in TCS and Smart Zone Smuggling case, who is the former logistics manager of TCS, has got protective bail from the Islamabad High Court while Smart Zone Company CEO Shakirullah is still at large. The Customs Intelligence and Investigation, Islamabad has conducted raids at different places for Shakir’s arrest, but to no avail. The Customs Intelligence and Investigation has deployed its ofQicials outside Islamabad and Rawalpindi high courts to arrest Shakirullah if he shows up for protective bail. The Customs Intelligence ofQicials have also been deployed outside the Peshawar High Court for this purpose. On the other hand, Special Customs Court Judge Chaudhry Mumtaz Hussain sent arrested employees of TCS,
Kamran, Zohaib and Zeeshan, on a judicial remand. Customs sources said no information has been obtained from the arrested employees during their one-day judicial remand. Therefore, during their appearance in the court, Customs Intelligence authorities told the court that there was no need to further interrogate the accused. The court then sent them to Adiala jail. Sources said that Kamran and Zohaib belonged to Rawalpindi and were deployed in the Rawalpindi warehouse of the TCS. They were arrested from Customs Court in Rawalpindi District Katchery while Zeeshan was brought from Lahore to Islamabad. Separately, Special Court Customs Judge Chaudhry Mumtaz Hussain while rejecting bails of Shakirullah and Ghazanfar has asked customs authorities to arrest them. However, the court accepted the bail petition of former TCS chief executive ofQicer (CEO) Saqib Hamdani and ordered him to deposit
strict laws in the offing to regulate courier cos
Rs 50,000 surety bonds. On hearing news of bail rejection, Smart Zone Company Owner Shakirullah and former employee of TCS Ghazanfar Gul Qled from the district court. Customs Intelligence and Investigation Deputy Director Shahid Jan said that Ghazanfar Gul and Shakirullah have negatively affected their case by Qleeing from the court. Sources said that the accused would move the High Court for bail. During the hearing, all the accused, the customs intelligence deputy director and lawyer were present in the court. The customs authorities presented challan of the case and revealed that total 8,322 units in Lahore and Rawalpindi warehouses of TCS were kept while they just recovered 1,500 units. The TCS authorities have not yet disclosed the whereabouts of the remaining 6,698 units.
see pAGe 6
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NATIONAL
SEPTEMBER 30 - OCTOBER 06, 2014
swat marble industrialists reject tax increase
SWAT: The marble industrialists in Swat have rejected 200 per cent increase in royalty tax and threatened closure of their factories. Swat Marble Industry Association (SMIA) President Haji Fazal Manan, addressing the meeting with association’s members, said that Malakand Division was exempted from taxes but they were paying a tax of 30 rupees per ton. Manan informed the meeting that concerned minister and Secretary Minerals had assured that final decision would be made by Chief Minister, but the notification was issued before holding of meeting with the CM.
PICT to shift import Container Yard to ease congestion he Pakistan International Container Terminal (PICT) would shift its import CY Full Release FR/RF containers to a rental place at Bay West Yard, West Wharf to help ease off congestion. PICT intimated the information to the General Secretary of Karachi Customs Agents Association through a letter Ref # CSD00001 dated September 10. The letter signed by Manager, Customs Services, PICT said that PICT is compelled to shift the import Container Yard (CY) due to the increased ratio of Customs examinations, markings and comparatively longer customs sealing times of the ATT as well as other bonded movement and most importantly the slow pace of imported deliveries. The PICT letter said that the measure would not only help ease off the congestion at the PICT but it would also help it stack fresh import boxes within the PICT that would expedite the examination process. PICT said that it will bear all the cost in terms of rental yard spacing, equipment and transportation. The process of documentation, payment and delivery will remain unchanged while the Gate Pass shall bear the position of BY if it is shifted to Bay West Yard, West Wharf opposite to KICT truck entrance so that C&F agent/consignees/transporter can determine the point of truck entrance, the letter concluded. —CT Report
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Appraisement-East revs up revenue he Model Customs Collectorate of Appraisement-East has managed to increase its share of revenue by 10 percent in the last 14 months. Officials told Customs Today that MCC of Appraisement-East Karachi in July 2013 enjoyed a healthy 32 percent share in revenue which has now increased to 42 percent. The increase in share could be attributed to the preference of importers to make Appraisement-West their preferred point of unloading for a number of reasons. The increase has come at the cost of MCC of Appraisement-West, the mother collectorate out of which MCC of Appraisement East was carved out last year. Nevertheless, MCC of Appraisement-East’s gain is MCC of Appraisement-West’s loss. The major reasons for the rising of MCC of Appraisement East, which has jurisdiction over on-dock Pakistan International Container Terminal (PICT) and off-dock Pak Shaheen and NLC terminals and all bulk shipments handled at East Wharf. The increase could also be attributed to a host of other reasons: an open-door policy to facilitate importers actively; an efficient complaint-solving mechanism; a 25 percent increase in PICT examination staff; an increase in container traffic; and transferring officers of bad repute. —CT Report
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Fbr revenue target of rs 2810b ‘too ambitious’ Tax collection target likely be revised due to devastating floods: Shahid Hussain Asad ISLAMABAD
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he Pakistan Institute of Development Economics (PIDE) has described the revenue target of Rs2,810 billion for the Qiscal year 2014-15 as too ambitious to be met, saying the projected increase in revenue collection target is likely to be missed due to various factors. In a report, the PIDE cited that the highest growth in tax collection Pakistan had ever achieved was 22 percent. The report stated that the government did not take into account the transfer of money to the provinces. One problem in setting the ambitious tax collection target was that estimates of transfers under the NFC to provinces were based on tax collection budgeted at the federal level. Under the 7th NFC award, it was stipulated that Balochistan will receive its provincial share on the basis of the budgetary projections instead of actual collection of the Federal Board of Revenue (FBR). Shortfall, if any, due to lesser collection by FBR was to be borne by the federal government. As a result of this law, an additional amount of Rs39 billion has been transferred to Balochistan from 2010-11 to 201314 on account of shortfall in collection of the FBR with reference to the collection budgeted at the time of framing the budgets. The problem of actual projection was not conQined to revenue, but it was also reQlective in other departments of the government. In Qiscal year 2013, the PSDP of Rs two billion was allocated to the Cabinet Di-
vision, but the division spent as much as Rs21 billion. The Capital gains tax, corporate tax rate, excise duty on telecom sector and customs duty have been rationalised in the last budget. The Qlat rate capital gains tax on trading in securities has been replaced with a cascading structure, with those holding the securities for a longer period paying less. The report said that the budget envisaged various incentives for textile industry but the expected impact of GSP Plus on the industry was yet to materialise. The poor state of energy supply must be constraining production, therefore, fresh incentives to textile industry, will partly add to the margins of the existing producers, if energy situation remains more or less unchanged during fiscal year 2015. Meanwhile, FBR is planning to review the tax collection target of Rs2.81 trillion set for the current Qinancial year 2014-15 owing to devastating Qloods in the country. Sources said that FBR has taken the decision after having nod from the Finance Ministry. According to FBR spokesperson Shahid Hussain Asad, FBR Tax Department is no track to attain the annual target of Rs2.81 trillion, adding that even the department has surpassed the targets during July and August. It is pertinent to mention here that FBR has collected Rs139 billion during 22 days of this current month of September as compare to Rs110 billion, which were collected during the same month of last Qiscal year. Meanwhile, Rs319 billion had been collected during July and August of the current Qiscal year 201415, which is 11 percent of the overall revenue collection target.
Fbr gives rs 42.265b target to Multan Customs BR has assigned Rs 42.265 billion revenue target to Multan Customs Collectorate (MCC) for fiscal year 201415 while it collected Rs 36.233 billion last year. FBR Chairman Tariq Bajwa assigned the revenue generation target in a meeting with customs’ collectors during his visit to the region. The customs sales tax revenue target for current fiscal year will be Rs 28.1 billion while it was Rs 24.912 billion during the previous fiscal year. The MCC will collect the federal excise duty with a target of Rs 335.61 million while the customs collected Rs 306 million during the last fiscal year. The MCC will generate customs duty worth Rs 13.492 million while it was able to collect Rs 10.705 billion during the last year.
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Shaheen Air moves SHC against Customs in Rs 4145m tax evasion case he administration of M/s Shaheen Air International Limited and other respondents have moved Sindh High Court (SHC) and filed a Constitutional Petition (CP) against Pakistan Customs in order to defend themselves in their alleged involvement in tax evasion of Rs 4145 million. According to details, the Model Customs Collectorate- (Preventive) had made a contravention report against M/s Shaheen Air International Limited in its alleged involvement in import of 47 aircratfs against Lease Agreement (LA) and dismantling, removing and scrapping of 12 aircrafts in its shed without prior permission of Pakistan Customs authorities. Subsequently, the Collectorate of Customs Adjudication-I had issued show-cause notice to
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M/s Shaheen Air International Limited to present its view point before the authorities concerned on August 26. Later on, the legal representatives of M/s Shaheen Air International (Limited) had sought legal documents from MCC-Preventive before presenting its view point. At the same time, the administration of M/s Shaheen Air International (Limited) has moved the SHC and submitted its para-wise comments regarding the case. It is pertinent to mention here that the Collectorate of Customs Adjudication-I had dispatched show-cause notices (SCNs) to all parties including Ehsan Ali Sehbai, Chairman Shaheen Air International Limited, Syed Yousaf (Chief/Director Procurement & Logistics), Faisal Rafiq, DMD (Airlines Operations), S M Anwar, Director Legal
Services, Abriaz Ali Khan, Assistant Legal Advisor of Shaheen Air International Limited and scrap dealers Altaf and Basharat in case of huge tax evasion of Rs 4,145 million by importing 47 aircrafts against different lease agreement (LA) and dismantling, removing and scrapping of 12 aircrafts out of the said 47 aircrafts. It may be mentioned here that the Model Customs Collectorate MCC-Preventive in its contravention report leveled charges against the M/s Shaheen Air International Limited that the private airline committed an offence under Section 2(s), 32(2) & 79 of the Customs Act, 1969 punishable under clauses 8,14 & 47 of Section 156(1)ibid read with the Sales Tax Act, 1990, Income Tax Ordinance, 2001 and Prevention of smuggling Act, 1977. —CT Report
The MCC will have to collect Rs 336.71 million withholding tax for fiscal year 201415 while it collected Rs 310 million during last fiscal year. The MCC was unable to achieve the target during the last fiscal year and remained 12 percent below the set target. Now the revised target collection increased up to almost 15 percent than the last fiscal year and it would be again difficult to accomplish the task. According to sources, the MCC wants to rationalise the target assigned by the FBR chairman. Talking to Customs Today, Collector Sarfaraz Ahmad Warraich said that serious effort would be made to achieve the target of fiscal year 2014-15. He said that the Customs Department would try to achieve the said target. —CT Report
scanners to be installed at karachi airport odel Customs Collectorate (MCC) Preventive Assistant Collector Engineer Mukhtar Ahmed Sheikh has said that the latest equipment, including 3-D and scanners, will be installed in Drug Enforcement Cell to curb smuggling from the Karachi airport. Talking to Customs Today, the assistant collector said that the latest scanners will play a vital role in detecting smuggled goods. He said that the airport administration should make immediate arrangement in order to enhance the departure area so that the customs officials could perform duties in a better way. CAA, Pakistan Customs, ANF and ASF should worked together to prevent smuggling. —CT Report
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NATIONAL 03
SEPTEMBER 30 - OCTOBER 06, 2014
Dubai Customs seizes 171.2kg cocaine
Dubai: In one of the UAE’s largest seizures of its kind over the past five years, Dubai Customs foiled an attempt to smuggle a large haul of cocaine, weighing 171.2 kilograms, with a street value estimated at more than AED 200 million. The seized narcotics were found in a shipment of fresh bananas totalling 45 tons. The consignment arrived at the Port of Jebel Ali in Dubai, and originated from a Latin American country via Europe.
BR has assigned the target of Rs 7,258 million from customs duty for the financial year 2014-15 to Model Customs Collectorate Preventive. The Collectorate has been asked to collect 26 percent more custom duty than that of the collection during the FY 201314. The experts said that the FBR targets collection was directly linked with the inflation rate which fluctuated to 11 percent to date. Though the collection targets have been assigned to th Regional Customs Offices with long delay, it is said that the collectorates have themselves collected customs duty above targets during July and August this fiscal year. According to details, the MCC preventive has been asked to hit Customs Duty collection target of Rs 454 million in the month of July FY 2014-15 while the Collectorate will have to achieve customs duty collection target of Rs 441 million in August. The collectorate has been asked to collect customs duty of Rs 570 million in September and Rs 634 million in October. Similarly, the collectorate will be achieving customs duty of Rs 635 million in November and it will have to collect custom duty of Rs 539 million in December in financial year 2014-15. The collectorate has been given a customs duty collection target of Rs 565 million in January while during February it has been asked to achieve Rs 628 million. Furthermore, the collectorate will be collecting customs duty of Rs 561 million in March and it will collect Rs 624 million in April. In May, the FBR asked the collectorate to collect customs duty of Rs656 million and in June Rs 895, to make a total of Rs 7258 million. The sources said that the collectorate which is currently headed by Customs Collector Mukaram Jaa is determined to achieve the target. —CT Report
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south region Collectorates outline steps to promote trade, increase revenue KARACHI
Chief Collector Nasir Masroor transfers 10 low-rank staffers
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ll the three Customs Collectorates of South Region have taken a number of measures to promote trade and enhance revenue collection. These measures have been chalked out by the Collectorates of MCC-Appraisement (East), MCC-Appraisement (West) and MCC-Port Muhammad Bin Qasim with the consent of Chief Collector-Appraisement (South) Nasir Masroor Ahmed. Under these measures, audit of WeBOC System has been initiated with the objective to remove hiccups to make it truly user/trade friendly. Likewise, various problems have been pinpointed in the system which has brought about tremendous improvement. Similarly, special efforts have been undertaken to avert blockade of consignments/containers at the port/terminals and a well thought out strategy has been devised for the purpose. Under the strategy, ofQicials of all the terminals have been taken on board and have been directed to ensure speedy grounding, de-sealing and arranging of containers besides additional space at port has been made available to accommodate maximum number of containers. Sundays and Eid holidays have also been declared as working days which has gone a long way in ensuring quick clearance of containers from the ports/terminals while undesirable marking of containers for examination has been discouraged.
ustoms Appraisement-South Chief Collector Nasir Masroor ordered immediate transfers and postings of 10 subordinate employees on September 20. The employees include four upper division clerks (UDC), four lower division clerks (LDC) and two record sorters. Four have been transferred from the Directorate of Post-Clearance Audit (PCA) while another four have been transferred to the PCA. Qutubuddin, UDC; Javed Awan, LDC (officiating); Ishfaq Alam, LDC (officiating) and Hafizur Rehman, record sorter; have been transferred from the PCA to MCC Appraisement-West, MCC AppraismentEast, MCC Appraisement-East and MCC Appraisement-West respectively. UDCs Ishrat Perveen and Shahabuddin have been transferred from MCC Appraisement-West to PCA Karachi while Saeed Baber, LDC (officiating); and Nadeem Ahmed Siddiqui, record sorter; have been transferred to the PCA Karachi from MCC Appraisement-West. UDCs Adil Rashid and Safdar Jahangir have been transferred to MCC Port Qasim and MCC Appraisement-West from MCC-East and MCC AppraisementEast respectively. Sources told Customs Today that the PCA is managing to work with half of its sanctioned lower staff and the fresh transfers and postings would not help it mitigate the shortage of the staff. —CT Report
C — Exclusive Customs Today photo
FBR assigns Rs7258 million target to Customs Preventive
As per details, GD Qiling before de-sealing of the container is not allowed, in the following cases: consignments imported as LCL cargo, goods to be cleared through offdock terminals, TP consignments till the time those are received at the dry ports and duly acknowledged. Arrangements have been made whereby necessary change shall be introduced in the system within next ten days in case of the above stated types of the consignments which would drastically reduce problems of the traders and would create tremendous convenience for them. Similarly best possible seating arrangements have been made at all Collectorates for the visitors who come to three Collectorates of the South Region for any purpose. Close interaction has been
maintained with all the trade bodies including the KCCI with the objective to resolve their issues without any hassle. All the officers/officials have been directed to attend to taxpayers at personal level so that Customs Business pillars are strengthened. Transparency and accountability within the organization in case of Appraisement Collectorates of South Region has been ensured by initiating disciplinary actions against delinquent ofQicers/ofQicials and sidelining those who do not facilitate the bonaQide trade. Active negotiations are underway with the Chinese government and their Customs authorities for developing of Electronic Data Interchange (EDI) so that electronic veriQication of FTA certiQicate could be done meticulously no real time basis.
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NATIONAL
SEPTEMBER 30 - OCTOBER 06, 2014
Chinese Customs intensifies crackdown against iphone smugglers
SHENZHEN: Chinese Customs officials have intensified their crackdown against the smugglers of Apple's new iPhones, which have not been launched in the country so far. The Customs officials had seized more than 200 iPhone 6 handsets smuggled from Hong Kong. Apple's iPhones have been put on a list of 20 items on which duty must be paid in China. The Huaqiang North Electronic Market of Shenzhen is one of biggest grey markets for Apple and other electronic products in China and there cost of a 16 GB iPhone 6 Plus varies from 11,000 to 15,000 yuan ($1,790 to $2,440).
Collector saleem issues sOps for vehicles clearance thru webOC KARACHI
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AFU makes seizure report of 218 turtles
— Exclusive Customs Today photo
he Drug Enforcement Cell (DEC) of Air Freight Unit (AFU), MCCPreventive has made the seizure report against accused Sajid Fiaz Cheema for his involvement in a foiled bid to smuggle 218 freshwater black spotted pond turtles at Jinnah International Airport, Karachi. In the report, it was revealed that passenger Sajid Fiaz Cheema, holding Pakistani passport No. AC-4156274, was leaving for Bangkok via Doha by Qatar Airways Flight No. QR-119 from Karachi. He was asked to declare if he was carrying any contraband/prohibited goods. Being dissatisfied with his declaration, his baggage comprising two suitcases were examined in presence of two SPOs Customs, Imtiaz Ali and Muhammad Ali Khan. Upon examination, 218 assorted-size live turtles worth Rs 10,900 each were found packed in cloth bags. The turtles being protected species under various local/international conventions such as Appendix-II of the cities and Pakistan Trade Control Act of Wild Flora and Fauna Act 2012 were detained as its export from Pakistan was not allowed. Subsequently, a ‘musheernama’ in this effect was prepared on the spot and live turtles were handed over to the Sindh Wildlife Department. An official of DEC informed Customs Today that the accused, hailed from Tehsil Wazirabad, District Gujranwala, was released on a personal bond while adjudication proceedings at collectorate level are being carried out against him, as he has violated Section 16 of Customs Act 1969. —CT Report
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he Collector of Model Customs Collectorate of Appraisement (West) Muhammad Saleem has issued Standard Operating Procedure (SOPs) for clearance of vehicles through WeBOC system. The details of SOPs are given as: a dedicated “Document Endorsement and Scanning Cell (DEC) has been established in order to ensure correct implementation of the Trade Policy provisions and to facilitate the importers. The functions include in clearance the vehicles through WeBOC system are documents called by the AO assessment will be presented in original by the importer and clearing agent for scrutiny by the DEC. AO (DEC) will see the original documents particularly passport, export certiQicate and undertaking on stamp paper. After ensuring their correctness, he will endorse the passport and export certiQicate mentioning thereon the manufacture month and year of the vehicle through the help of manufacturer’s authentic and reliable website. Authentication of the documents will be done with full signatures with name and stamp. Scanned copies of the authenticated documents will be uploaded in the system. Relevant pages of the passport, showing photo ID of the importer, data of issue and expiry of the passport. Pages of the passport indicating departure and arrival dates of the passenger are stamped by the immigration authorities. Original Export CertiQicate would be duly endorsed with manufacture month andyear applicable ITP/VR and due extent of depreciation. Once the GD has been Qiled, the Risk Management System (RMS) will decide
— Exclusive Customs Today photo
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further course of action whether the GD will go through Red, Yellow or Green channel. Assessing OfQicer (AO) will constantly monitor his inbox to see the GDs appearing therein for assessment, the AO will immediately undertake initial scrutiny of the declaration and will call the documents (as listed above) through the system from the importer and clearing agent. This document calling message will be Qlashed to DEC as well to alert the ofQicials for instant action as soon as the importer and clearing agent approaches the cell. In case an examination of vehicle is required then that will immediately be sent to the Examining OfQicers (EOs) for examination and report. The AO while checking the declaration made by the importer and clearing agent and to ensure that correct self-assessment of payable duty/taxes has been made, will review the following documents in particular as uploaded and available on the system: passport of the passenger, export certiQicate to ensure that there is no contravention of Trade Policy and an undertaking on already prescribed format on stamp paper of
Rs50/100. The AO Assessment will prepare an assessment sheet on MS Excel Format for vehicles falling outside Qixed duty/taxes regime to ensure that leviable duty/taxes are correctly calculated and paid. This sheet will be handed over to AO (DEC) for uploading in the system with the relevant GD for subsequent audit and review that proper working was done for ensuring correct levy of duty and taxes etc. Once the assessment is completed by the AO/PA/AC/DC, the GD will be transmitted to the importer/clearing for acceptance or otherwise of the assessment done. In case of acceptance of the assessment Qinalized by the assessing ofQicers and payment of leviable duty/taxes thereon, the GD shall be marked to the Form-A issuance ofQice (PA shed) and to the Gate OfQicer for gate-out/release of the vehicle from Customs control. PA (shed) will Qill in the Form-A as available on the given template in the system and issue a hard copy in shape of computer printout for release of vehicle from the port/terminal.
Appraisement-West asks customs agents to renew licenses he Model Customs Collectorate of Appraisement-West has advised all customs agents, whose licenses are due to expire on December 31, to apply for their renewal by October 31. Memorandum No APPG/LA/536/2004 dated September 20 issued by Assistant Collector of Customs Akbar Jan said that the customs agents whose licenses for clearing and forwarding of goods and baggage are due to expire on December 31 are required to apply for the renewal of the same two months before the expiry date. Those who fail to apply for the renewal by October 31 will not be allowed to conduct their clearing and forwarding business after December 31. The application for the renewal of the license should be accompanied with the following documents: 1. An affidavit to the affect that no case of tax fraud and criminal case has been finalised from the court of law or tribunal against the licensee or any of the partners as the case may be. 2. Information about total number of declarations filed showing declarations of imports and exports separately and detail of cases made out against him. 3. Proof of payment of renewal fee which shall be Rs 2,000 for two-year renewal. 4. An undertaking to furnish the certificate of participation (for each year) mandatory from directorate general of training and research (custom, sales tax and federal excise), within three months or as and when the course is conducted by the directorate 5. Updated attested copy of tenancy agreement 6. Copy of latest income tax return filed 7. Copy of latest sales tax return filed 8. Copy of CNICs of proprietors, partners, directors After the submission of these documents, the Licensing Section (MCCAppraisement), 8th Floor, Customs House, Karachi will authorise them for payment of the renewal fee and the licencees would be required to deposit the same at NBP’s Customs House Branch, Karachi on the same day and deposit copy of paid slip in Licensing Section. —CT Report
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PTCL, Q-Mobile among 80 high-profile cases awaiting decisions KARACHI
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he Collectorate of Customs Adjudication-I has yet to decide more than 80 cases, it is learnt. Sources informed Customs Today that Collectorate of Customs Adjudication-I Collector Dr Fareed Iqbal Qureshi has to decide the fate of more than 80 cases, including some high-proQile cases against
Pakistan Telecommunication Company Limited (PTCL), Shaheen Air International Limited and Q-Mobile International Limited. Heavy amount of duty/taxes have been involved in the cases and it would be up to the collector that how he manages to recover the evaded duty taxes through his judgements. Sources also said that showcause notices have been issued to the major parties, including New Allied Electronics Limited,
Digicom Limited (authorised dealers of cellular company QMobile), PTCL and Shaheen Air International Limited. After a period of nearly five months, Dr Fareed Iqbal Qureshi has been appointed as a permanent collector, as after the retirement of Syed Shahinshah Hasnain from his service in May 2014, Collectorate of Customs Adjudication-II Collector Dr Ahmed Mujtaba Memon was given additional charge of the
Customs Adjudication-I. During his short term, sources said, Dr Mujtaba decided longstanding cases which contributed a lot in national kitty, as ONOs have been issued against Water Link (Private) Limited and Mobilink (Private) Limited for recovery of millions of rupees. Notices have also been issued to fabric importers, Digicom, New Allied Electronics and Shaheen Air International Limited during his tenure, sources added.
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CUSTOMS WIDENS SCOPE OF INVESTIGATION IN SMUGGLING CASE FrOM pAGe 1 Customs Intelligence Deputy Director Shahid Jan told the court that Ghazanfar had no record of goods when the TCS warehouse was raided. According to the customs ofQicial, Ghazanfar told them that he had committed a mistake and he should be pardoned. The customs authorities had told him that TCS had kept ‘illegal’ goods in its warehouses. The ofQicials also claimed there was no agreement between TCS and Smart Phone Company to store the Smart Zone goods in TCS warehouse in Rawalpindi. TCS authorities were also bound to ask Smart Zone Company about legality of goods, the ofQicials added. Judge Mumtaz Hussain asked lawyer of the accused whether they had any written agreement in this regard. The lawyer, however, could not furnish any satisfactory reply. He argued that the customs authorities had presented a wrong picture of the case and a court in Lahore had accepted their bails. He said the customs authorities had concealed the fact that only 22 units had stickers of Afghan Transit Trade. He said the customs authorities were trying to give an impression that all units had stickers of the transit trade. He said that in the agreement between TCS and Smart Zone Company, the address of a Peshawar plaza owned by Shakirullah was mentioned, adding that the same address was also given on FBR and SECP websites. He said Smart Zone Company was authorised dealer of Samsung mobile in Pakistan and the units raided by customs were legal and they have proof. He said that Customs Intelligence did not hold any inquiry and presented fake ‘zimni’ report in the court. The lawyer also said the customs authorities have not yet included duties and taxes assessment in the report. The customs lawyer told the court that holding of inquiry was not the job of the Customs Intelligence and Investigation. TCS lawyer said that their company had entered into an agreement with Smart Zone in which it had been decided that Smart Zone would provide an account opening form. The TCS lawyer presented the form in the court. The court asked customs authorities about the inclusion of the former TCS CEO in the investigation. To which, customs authorities said that he had signed an agreement with the Smart Zone. The judge asked, “Do you penalise the FBR member if a customs ofQicial commits mistake?” Customs Intelligence Deputy Director Shahid Jan said that head of the organisation could be questioned for his employees act. On hearing arguments, the court issued the verdict. Meanwhile, ofQicials of Customs Intelligence have decided to put the names of the accused on
the Exit Control List (ECL). According to sources, the Customs Intelligence ofQicials have decided to write a letter to the Interior Ministry after Shakirullah and Ghazanfar Qled following cancellation of their bail petition. The ofQicials have come to know that Ghazanfar has gone to Saudi Arabia to perform Haj while Shakirullah could also leave the country anytime. The story has taken a surprise twist as customs authorities have learnt that Saqib Hamdani ‘owned’ the building of TCS Express and Logistics Centre near Jinnah International Airport at Iqbal Avenue, Karachi. This revelation has opened new dimensions in the smuggling case that how a man hired as CEO could have owned the rented building. Sources told Customs Today, “The customs ofQicials have already believed that the TCS has removed Hamdani just to deceive the customs authorities and to save the company from smuggling allegations, however, it may be possible that Hamdani has shares in the TCS as no company buys property in the name of an employee. The customs investigation ofQicers have started investigations into the possibility of the TCS company’s involvement in the smuggling case.” Sources added, "The smuggling case was originally against TCS company as Saqib Hamdani was just an employee who signed agreement with Smart Zone Company, and the TCS could be the main partner of the smuggling activities." On the other hand, the former Director Operations of TCS, Rizwan Kapoor has rejected the smuggling allegations against TCS and its employees. He said that Anti-Narcotics Force (ANF) have awarded shields to TCS employees on several occasions, in admiration of their performance to curb the smuggling via courier. Moreover, he said that ANF used to train employees of TCS against smuggling activities. "TCS has represented Pakistan at UN forums and also international universities taught MBA students about management system of TCS," he added. He said that TCS chairman and chief executive have given clear instructions to cooperate with customs authorities. "Customs ofQicials raided our warehouse and seized couriers, but TCS employ-
ees not only cooperated but also provided transport and labor to load the seized items, which showed our full coordination with Pakistan Customs," he claimed. The alleged smuggling incident by TCS Courier Company has alerted Customs Intelligence and Investigation authorities as well as other antismuggling organizations. The ofQicial permit given to these companies can be a “license to smuggle” and authorities are mulling to not only frame strict laws but also constantly check vehicles taking courier on roads and keep close eye on godowns of courier companies time to time. Authorities of Customs Intelligence and Investigation Islamabad and Rawalpindi have decided to send suggestions and recommendations to the government for establishment of a monitoring body for these organisations to check their performance. TCS smuggling case has badly shattered conQidence of anti-smuggling bodies on courier companies. Therefore, customs authorities will adopt new ways to curb such practices. One thing has been decided that vehicles of courier companies will not be able to freely move on country's roads like they were doing before and they will have to undergo strict checking because nobody in the country knows what these vehicles carry inside. Therefore, it has been decided to bound courier companies to keep record of everything delivered in courier Media organisations vehicles, sources concluded. It is worth mentioning that the urge Fbr Chairman TCS authorities made phone Tariq bajwa to calls and tried to put pressure on Customs Today not to pubprobe TCs case lish articles against TCS, its directors and former CEO Saqib under his Hamdani. Media organisations and supervision civil society have shown their concern in the wake of recent tactics used by TCS to silence the voice of Customs Today. They have also urged FBR Chairman Tariq Bajwa to take action in this regard and probe the case under his supervision.
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SEPTEMBER 30 - OCTOBER 06, 2014
SPECIAL REPORT 07
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08 EDITORIAL
SEPTEMBER 30 - OCTOBER 06, 2014
Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-300-4009261 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDITOrIAL
pTI, pAT sit-ins – cutting edge idea s many as 18 districts out of 36 districts in Punjab have been declared calamity-hit after various crops spreading over thousands of hectors land have been destroyed in the recent rains. According to official sources, agriculture produce is expected to be lowered by 33 percent of its target this year, roads and highway infrastructure has been destroyed while adequate availability of fodder for cattle will also be severely affected. The Punjab government has allocated Rs 1.8 billion to start relief activities in the worsthit areas and the government officials have been put on high alert to speed up the relief work. It is not the first time that natural calamity has destroyed agricultural and industrial infrastructure of the country but this has been happening for the last many decades. The half-hearted government steps could never change the fate of the people who suffer from natural calamities every year. There are several countries in the world which suffer floods and earthquakes, but perfect arrangements are made in developed countries to avoid collateral damage. The people in the third world nations, like Pakistan, India, Sri Lanka and Bangladesh, are always prone to face hostile atmospheric situations as it was a fait accompli and they are pushed back thousands miles away from the road of progress and prosperity. Pakistan is an agricultural economy and there is need to develop infrastructure to avoid catastrophes. Every problem has a solution and the best way is to turn problems into opportunities and failures into successes. There are several suitable geographical locations in Punjab and Sindh where water reservoirs can be built to collect rainwater and use it for agricultural purpose. But problem is that -- maybe we lack vision -- lack trust in our civilian institutions -- or we are caught unprepared every year due to lethargic bureaucratic attitude. The government officials are put on high alert in every emergency situation, but they are ignored as faceless entities to live and work in a monotonous environment. There is a need to run official business as a private enterprise and motivate the employees by giving them weekly and monthly targets – and of course incentives. Last but not the least, the participants of the sit-ins in Islamabad should postpone their protests and gird up to help the flood victims in the calamity-hit areas. It will be a big revolution and change if Pakistan Tehreek-e-Insaf chief Imran Khan and Pakistan Awami Tehreek chief Dr Tahirul Qadri change their attitude keeping in view the current situation in the country.
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Fixing oil prices – pakistani style LAHORE
Dr AFTAb AFZAL
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he prices of Brent crude has fallen below $98 a barrel in the international market which is a 17-month low for the sixth straight session, thanks to oversupply and weak demand for the oil in the region. Earlier, the North Sea crude oil reached $115 a barrel after Islamic States of Iraq and Syria took control of several oilfields, when it swept across northern Iraq in June. However, the prices have fallen now more than 15 percent as supply from other countries has increased much faster than the demand. Economists
fear that the volatile situation in the Middle East could curb oil production while the slow economic growth, especially in Asia and Europe, also curtailed the demand for oil. As oil supply is growing steadily in some regions, including North America, the world will need less oil from the Organisation of the Petroleum Exporting Countries. Ironically, the benefits of lower oil prices in the international level have little impact on the petroleum prices in Pakistan thanks to the government financial managers sitting in various departments and councils. The oil prices are devised by keeping in view ex-refinery price, the price which is paid to local refineries, equating to the
landed cost of the product, excise duty which is fixed in accordance with ‘wish and requirement of the government’. Instead of providing a helping hand to the people by providing cheap oil to industries and households, petroleum products are an important source of income for the government. Though the inland freight is used to equate the prices of the products all across 29 locations in Pakistan, the cost of transportation varies in accordance with the distance of the retail outlet from the nearest depot. However, consumers are imposed with sales tax calculated at 15 percent of the price before sales tax. In old days during British Raj,
Banias used to calculate the loan amount in a way that ‘this and this amount you owe to me and this and this amount is for the products you purchased from me.’ In this way, they used to charge double for the same commodity from their simpleminded customers. In the same way, instead of providing relief to the people, the financial managers always try their best to squeeze them more and more to extract more and more money from them. They fail to understand that more the benefits to the industry, more and more production would be achieved and more production means more taxes and more revenue in the national kitty.
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NATIONAL 09
SEPTEMBER 30 - OCTOBER 06, 2014
webOC fails to ease importers’ woes at ports
KARACHI: Importers and clearing agents have expressed deepest concerns over delay in clearance of consignments, even after the installation of new computer-based WeBOC system at the terminals of the Karachi Port and the Port Qasim. Sources told Customs Today that importers still have to wait days for clearance of their consignments even customs had installed WeBOC system at terminals but customs staff still works manually instead of using the new system.
FBR lacks CNICs of 18 officers ISLAMABAD
CUsTOMs TODAY repOrT www.customstoday.com
he Computerized National Identity Cards (CNIC) numbers of 18 FBR officers including two BPS-20 and five BPS-19 officers are not existed in the Human Resource Information System (HRIS) and internal identification system of the board. This anomaly or discrepancy speaks volumes about the up-gradation and modernization of the internal system of the national revenue collecting agency. According to available data, 18 officers, rank from BPS-20 to 17 are among in the latest list of FBR employees whose CNICs don’t exist in Human Resource Information System (HRIS). These officers include two officers of BPS-20 including a Collector and Commissioner, five officers of grade-19 including two secretaries, one Commercial Counsellor, Senior Technical Adviser and OSD. Similarly, the list also include nine officers of grade-18 including one Commercial Secretary, two Accounts Officers, three Chief Accounts Officers, two Second Secretaries and one Deputy Commissioner. While two officers of grade-17 including Personal Staff Officer and Assistant Director also fall in the list of staffers whose CNICs do not exit at HRIS. Well-placed sources revealed that at the time of recruitment these officers might have submitted their non-computerized identity cards which could not be updated later. However, the state of affairs speaks volumes about the up-gradation of the national revenue collecting agency.
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wrITe TO Us YOUr GrIevANCes: Through CUsTOMs TODAY platform HeLp Desk, now you have chance to DIreCTLY write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. wHO can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers TO wHOM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: newsdesk@customstoday.com.pk
valuation ruling of Usb, flash drive and memory card issued Valuation ruling of bicycle parts, tamarind with seeds determined KARACHI
sYeD MUHAMMAD AsLAM www.customstoday.com
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he Directorate General of Customs Valuation has determined the customs value of China-origin USB data traveller, USB Qlash drive and memory card, vide Valuation Ruling No. 688/2014 No. MISC/35/2013-VII dated September 23, 2014. The customs value of USB data traveller, USB Qlash drive and memory cards was determined under Section 25-A of the Customs Act 1969 vide Valuation Ruling No. 668/2014 dated 31.3.2014. The aggrieved parties Qiled revision petitions under Section 25D before the Director General of Customs Valuation. A representation was also Qiled before the DG for revision of values. Therefore, an exercise to redetermine the customs value of the said items was initiated to reQlect its current price trend. The valuation methods provided in Section 25 of the Customs Act 1969 were applied to address the valuation issue. The transaction value method under Sub-Section (1) of Section 25 of the Customs Act 1969 was found inapplicable because required information under the law was not available. Identical/similar goods valuation methods provided in Sub-Section (5) and
Valuation ruling of solar fans without battery, solar panel issued he Directorate General of Customs Valuation has determined the customs value of China-origin solar fans (without battery and solar panel), vide Valuation Ruling No. 689/2014 No. Misc/13/2014-VII dated September 23, 2014. The directorate initiated the exercise to determine the customs value of the said items after it was brought into its notice that solar fans (without battery/solar panel) were being imported at under invoiced values thereby causing loss to the national exchequer. The valuation methods provided in Section 25 of the Customs Act 1969 were applied to address this valuation issue. The transaction value method under SubSection (1) of Section 25 of the Customs Act 1969 was found inapplicable because required information under the law was not
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(6) of Section 25 provided some reference values. Market enquiry was also conducted under Sub-Section (7) of Section 25 and Qindings of enquiry were considered. Consequently, the fall back method was envisaged under Section 25(9) of the Customs Act 1969 to determine the values of the items. Meetings with relevant stakeholders were held on August 19 and September 18. Finally, the direc-
available. Identical/similar goods valuation methods provided in Sub-Section (5) and (6) of Section 25 provided some reference values. Market enquiry was also conducted under Sub-Section (7) of Section 25 and findings of enquiry were considered. Consequently, the fall back method was envisaged under Section 25(9) of the Customs Act 1969 to determine the Customs value of the items. The customs value (C&F) of solar ceiling fan 48” (without battery/solar panel) having PCT 8414.5110 and Proposed PCT for WeBOC 8414.5110.1000 is determined at $6.5 per piece. The customs value (C&F) of solar ceiling fan 56” (without battery/solar panel) having PCT 8414.5110 and Proposed PCT for WeBOC 8414.5110.1100 is determined at $7 per piece. —CT Report torate general assessed the duty/taxes on the import of Chinamade USB data traveller/USB Qlash drive/memory cards. Meanwhile, the Directorate General of Customs Valuation has determined the Customs values of Chinaorigin bicycle parts, vide Valuation Ruling No.690/2014 No.Misc/16/2008-VIIIA-P-II dated September 23, 2014. The Customs value of the said
goods were earlier determined under Section 25A of the Customs Act 1969, vide Valuation Ruling No. 319/2011 dated May 18, 2011 and its amendment dated July 23, 2011. However, the directorate initiated the exercise to re-determine the value after it received representations from M/s Bicycle & Bicycle Parts Association, Lahore as well as others who called for revision. The valuation methods provided in Section 25 of the Customs Act 1969 were applied to address this valuation issue. The Transaction value method under Sub-section (1) of Section 25 of the Customs Act 1969 was found inapplicable because required information under the law was not available. Meanwhile, the Directorate General of Customs Valuation has determined the customs value of tamarind with seeds from all origins through Valuation Ruling No. 687/2014 No. MISC/11/20141/7597 dated September 22, 2014. The directorate did this after it received a reference – (SI/Misc/263/2014/GR-I (AW) – from MCC of Appraisement-West for determination of tamarind with seeds under Section 25-A of the Customs Act 1969. Meetings with the stakeholders, including the importers and the representatives of FPCCI, KCCI and Kiryana Merchants Association Karachi were held on August 21 and September 3. The written contentions forwarded by the stakeholders were scrutinised.
Glitches in sT registration To,
FBR Chairman, Govt of Pakistan, Islamabad The current system for ST registration is time-consuming as it requires two to three months to get a manufacturing unit registered for sales tax. The existing system is unfriendly and encouraging malpractices instead of facilitating taxpayers. The number of sales tax registered persons would not increase if the registration process is not overhauled on war footings. Apart from taxpayers, tax professionals are also Qinding it difQicult to deal with issues related to all three taxes - income tax, sales tax and federal excise duty. Ambiguities in tax return form for Tax Year 2015 are not yet
removed despite the lapse of two months. Seventy percent of the problems being faced at operational level in FBR are due to PRAL and its software platform. The association strongly recommends outsourcing its IT systems on build, operating and transferring (BOT) basis to create a state-of-the-art IT infrastructure. There is a need for the establishment of regional hubs to resolve all PRAL-related issues within Qive working days. We hope that FBR will introduce a hassle-free and quick system for sales tax registration to resolve the problems of taxpayers. With profound regards, Abdul Qadir Memon, PTBA President, Karachi
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10 NATIONAL
SEPTEMBER 30 - OCTOBER 06, 2014
ANF nails three with 5-kg hashish, heroin
PESHAWAR: The Anti-Narcotic Force continued crackdown on drugs peddlers and nabbed three accused with five kgs of chars and heroine in different raids conducted in Peshawar and Mansehra. Spokesman for Anti-Narcotics Force Mr Saeed Ahmad told Customs Today that the force had been striving hard to root out the menace of narcotics and always act swiftly whenever get tip-off. He informed that the ANF Peshawar during routine checking arrested an Afghan national identified as Aman Khan with one-kg hashish while travelling in a passenger van.
FBR to serve 2,700 notices on potential taxpayers
Customs Intelligence is nightmare for smugglers: Nisar
LAHORE
M HAYAT
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Customs I&I seizes 72,000 tablets of Indian-origin, Iranian blankets from Quetta Express IMrAN ALI kHAN
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— Exclusive Customs Today photo
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he Customs Intelligence and Investigation Multan has curbed smuggling in its precincts and only nine cases of seizure have been registered owing to good performance. The Customs Intelligence and Investigation has generated Rs 7.6 million during August of the Qiscal year 2014-15. Additional Director (AD) Customs Intelligence and Investigation Nisar Ahmad said that his department has performed pretty well in the last few months and “we are a nightmare for smugglers”. The Customs Intelligence and investigation has registered total nine seizure cases in August. The cases include seizure of two vehicles. Customs Intelligence and Investigation Multan comprised of three regions of southern Punjab, including Sadiqabad, Dera Ghazi Khan and Multan range ofQices. There were three, four and two seizure cases registered in Multan, DG Khan and Sadiqabad regions respectively. Nisar stressed that unfortunately his department lacked facilities, but their revenue had increased. FBR Chairman Tariq Bajwa also pointed out the poor performance of Sadiqabad Region in his Multan visit a few days ago. Two vehicles worth Rs 5
he Broadening of Tax Base (BTB) Lahore is going to issue 2,700 notices on potential taxpayers by October asking them to pay taxes or file replies within 40 to 45 days. These potential taxpayers were earlier served notices but they had not replied the notices till now. Sources in Federal Board of Revenue told Customs Today that the BTB issued 3,900 notices to the potential taxpayers of which 1,200 taxpayers replied the department, however, responses upon remaining 2,700 notices has not been filed. “The BTB has served the notice to those potential taxpayers who have conducted heavy bank withdrawals, purchased properties and cars etc in order to bring them into the tax net under the FBR’s tax base broadening drive,” they said, adding that if any potential taxpayer violated the orders he may be arrested or his immovable and movable properties be confiscated under section 130, 139 and 140. “In order to seize property of the potential taxpayers or arrest them the FBR will get help of DOR, ADC and Board of Revenue,” the sources explained. It is important to mention here that, Lahore BTB issued 18,000 notices to the potential taxpayers who have not been filing their returns evading huge taxes in August too and was created total tax demand of Rs 2 billion out of which Rs 400 million come under minus account that time.
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MULTAN
million were seized in Multan and Dera Ghazi Khan. Additional Director Multan Customs Intelligence and Investigation said smuggling was controlled to some extent due to the effort put by his staff. Nisar said that Customs Intelligence and Investigation has sent all seizure cases to the Adjudication Customs for judgement after a thorough investigation. Additional Director Customs Intelligence and Investigation Nisar Ahmad told Customs Today that the Customs Intelligence was a big constraint in smuggling due
to efQicient performance and they were going to take initiatives for increasing revenue. Meanwhile, Customs Intelligence and Investigation (I&I) have recovered different smuggled goods worth Rs 2 million from the Quetta Express at Khanewal Railway Station. Customs I&I raided the Quetta Express in an early morning operation when it reached Khanewal Railway Station from Quetta and recovered 270 imported blankets of different sizes, 45 pieces of Iranian darri, three gearbox for heavy vehicles, 40kg milk toffees and
128kg coated milk chocolates. All the recovered goods were smuggled from Iran and their estimated value is more than Rs 2 million. Meanwhile, the ASO of Customs Intelligence and InvestigationFBR, Multan region has recovered almost 72,000 tablets of Indianorigin aphrodisiac drugs. There were two different brands involved in the seized tablets -Vega 100 and Cobra 120. The tablets were loaded in Polythene bags and they were captured during routine inspection near Chowk Qureshi, Muzaffargarh.
Fbr CbA not illegal: Mian Qayyum
Union confronts bajwa’s statement LAHORE
M HAYAT
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ederal Revenue Alliance Employees Union, CBA FBR Pakistan Central President Mian Abdul Qayyum has clariQied that the Union falls well under deQinition of NIRC (National Industrial Relation Commission) as the Honorable Islamabad High Court declared FBR as a trade organization and FBR Union as CBA (Collective Bargaining Agent) in terms of a verdict of the Court while issuing Registration CertiQicate No.20/2010 dated 24-11-2010. The clariQication was received by Customs Today soon after
Chairman FBR Tariq Bajwa termed FBR CBA Union as illegal saying that the union does not fall under the deQinition of NIRC. The Union president said that the Court not only issued the Registration CertiQicate but also determined the Federal Revenue Alliance Employees Union (FRAEU) as CBA for the workmen employed in the Establishment of Federal Board of Revenue in terms of section 24(I) of Industrial Relations Act, 2008 w.e.f. 24-11-2008. “It is re-iterated that submission of request for accomplishment of the charter of demands is fundamental right of the FBR employees as per IRA, 2012 as well as Article-17 of the Constitution of Islamic Republic of Pak-
istan. But instead of fulQilling the legal demands accountable to the FBR employees BS-01 to BS16 vindictive measures have been initiated not only against the undersigned but also the other ofQice bearers of the CBA and FBR employees as well. This situation did create an inordinate embarrassing situation amongst all FBR employees,” Mian Abdul Qayyum said. He said that the CBA (FRAEU) submitted its charter of demands containing legal demands. FBR Union/CBA (FRAEU) has ever focused upon distinctive visualization to revenue impact ensuing to the inQinite interests of the Federal Board of Revenue along immediate redressal of the grievances of the FBR employees.
FBR CBA union has “Al-Hamdo-Lillah” an elevation of faculty to realize the budget of whole Pakistan even if a spiritual support is developed in consonance with the essence of FBR Act, 2007 whereby the FBR stood declared as an Autonomous Body but unfortunately, the same is not being observed in its real shape as envisaged in FBR Act, 2007, Qayyum added. The CBA president said the CBA Union FBR Pakistan is not only committed to resolve the service related problems of FBR employees but also observing a diversity as well as perceptible vision to revenue impact in the interest of FBR. The CBA president urged the PM to kindly take a notice of the issue.
www.customstoday.com SEPTEMBER 30 - OCTOBER 06, 2014
CARTOONS SPECIAL 11
0.4 million property tax notices issued: e&T Director Akram
LAHORE: People will pay 50 percent more property tax than the last year’s valuations while 0.4 million property tax notices had been issued this year in the Punjab. Talking to Customs Today, Excise and Taxation(E&T) Lahore Director Akram Ashraf Gondal said that 0.4 million property tax notices have been issued all over the Punjab to collect tax returns for the year 2014. He added that the taxpayers could enjoy five percent concession in tax returns by submitting the returns till September 30.
excise Dept frames new law on vehicle registration T
he Motor Branch of Excise and Taxation Department Punjab is planning to introduce a new law regarding registration of vehicles of other provinces after permission of the government. A source in the Motor Branch of Excise and Taxation Department said his department was going to introduce a new law for the facilitation of the vehicle owners. “Earlier vehicle owners had to go to other provinces to pay their token tax from where vehicle is registered. After the passage of the law, people who have vehicles of other provinces would get their vehicles registered in Punjab and pay their tax everywhere in the province,” he added. The sources concerned disclosed that until today, almost 5,000 tax defaulter vehicles have been captured in the current Qiscal year. —CT Report
China Customs to enhance efforts against infringement through mail
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SEPTEMBER 30 - OCTOBER 06, 2014
Telenor deposits rs 24m tax after customs notice
ISLAMABAD: Telenor, one of the most popular cellular companies in Pakistan, has submitted Rs 24 million tax. As per details, Directorate General of Customs I&I Islamabad/Rawalpindi Deputy Director Eng Shahid Jaan had caught tax theft worth Rs 24 million in Telenor’s two goods declarations on importing equipment for its 3G towers. After investigation, the cellular company was found guilty of mis-declaration and was issued notice of filing tax amount.
Commerce Ministry striving to turn GSP Plus into FTA High-level exchanges are likely to take place in coming days, especially from pakistan to convince eU members through coordinated lobbying ISLAMABAD
M ArsHAD
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he Ministry of Commerce is making preparations to move a step forward by transforming the GSP Plus status into free trade agreement (FTA) with the European Union. In all, 406 members of the European Parliament supported the move at a session in Brussels on December 12, 2013 and granted GSP-Plus status to Pakistan on December 12 last year. It was considered as a move to boost the textile and other industries' exports' duty-free access to 27 European countries. Under the deal, 75 Pakistani products would have dutyfree access to European markets as the GSP-Plus status allowed almost 20 percent of Pakistani exports to enter the EU market at zero tariff and 70 percent at preferential rates. Free trade agreements are somewhat different because FTA's eliminate tariffs, import quotas, and preferences on most goods and services traded between the member countries. If people are also free to move between the countries, in addition to FTA, it would also be considered an open border. It can be considered the second stage of economic integration. Countries choose this kind of economic integration if their economic structures are complementary. If their economic structures are competitive, it is likely there will be no incentive for a FTA, or
only selected areas of goods and services will be covered to fulfill the econ o m i c i n t e re s t s between the two signatories of FTA. "The Ministry of Commerce is mak-
Ministry is making preparations to move a step forward
ing preparations to move a step forward by transforming the GSP Plus status into free trade agreement (FTA) with the European Union. The preparations are at consultative stage and file work is being done," a wellplaced source disclosed to Customs To-
day, saying that the Ministry was committed to achieving the milestone for the sake of national interest. "To achieve this target, highlevel exchanges are likely to take place in coming days, especially from Pakistani side to convince EU members through coordinated lobbying and convincing sessions," the source further revealed. According to the source, visit of Commerce Minister Khuram Dastgir to the Netherlands was also a part of mutual consultative
process. It is pertinent to note here that the Pakistan government also had to made strenuous efforts to convince EU members to obtain GSP Plus status. At present, some 62 free trade agreements are being implemented among different countries of different regions of the world. However, there are seven FTAs that have been negotiations and signed by the respective head of states but not yet ratified by the countries legislative body.
Nbp starts action against 11 bankers for rs 12 billion fraud LAHORE
CUsTOMs TODAY repOrT www.customstoday.com
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he National Bank of Pakistan (NBP) has taken action against 11 ofQicials for their involvement in around Rs 12 billion irregularities. The accused include four Pakistani and seven Bangladeshi ofQicials. According to documents available with Customs Today, the NBP detected irregularities, including untimely and improper classiQication of loan accounts in the light of Bank of Bangladesh circular no: 05/2006 dated 22-06-2006 and 02/2005 dated 15-022005. Appropriate securities were not obtained against the sanctioned limits to fully secure the bank’s interests.
The account of interest was not carried out as per instructions and guidelines in the Bank of Bangladesh circular No 05/2006 dated 22-06-2006 and 02/2005 dated 15-02-2005 instead it was taken into the branch’s income account. Frequent enhancement of limits was allowed without reasonable justifications. The outstanding balance of two classiQied accounts was transferred from Moti Jheel branch to Gulshan branch and later both accounts were transferred to Moti Jheel branch without any justiQication. Limits were enhanced frequently, but an additional charge on mortgaged properties was not created with the authorities concerned. Requisite monitoring of stock was not observed. Mostly payment loan accounts never got adjusted and
Nbp detects irregularities & improper classification of loan accounts
were renewed against partial payment of interest amount. Insurance policies were not arranged in a few loan accounts. According to the documents, Pakistani ofQicials are: QSM Jahanzeb, exvice president (then general manager); Farooq Abbas, senior vice president (then general manager Bangladesh); Farooq ZulQiqar, additional vice president (then manager Chittagong and Gulshan Branch Dhaka); and Munawar Hussain Gopang, AVP/regional coordinator OBU, Bahrain. The documents show that the Overseas Banking Group has been asked to initiate criminal proceedings against Jahanzeb. While SVP/A&AIG HQ Hamid Masood has conducted an inquiry and submitted his report against Farooq
Abbas and Farooq ZulQiqar. Now the case is ready for submission before the Disciplinary Cases Committee. The documents further disclose that Munawar Hussain Gopang has submitted his reply and the case is under submission. Similarly, the Overseas Banking Group has been advised to lodge criminal complaints against the Bangladeshi ofQicials. The ofQicials include ASM Munirul Islam, SDGM Moti Jheel Branch Dhaka; Fehmida Saeed Saki, AGM Moti Jheel Branch Dhaka; Salim Ullah, FAGM/Credit Head Quarter Bangladesh; Ghulam Nabi, Moti Jheel AGM; Kazi Nizamul Islam, AGM/Manager Chitagong Branch; Prodip Gain, SEO Moti Jheel Branch Dhaka; and Masood Kazim Khan, AGM.
Published by M. F. Riaz, Off. 91, 3rd Flr, Gul Plaza, M.A. Rd., Karachi, for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi